New research from IDC, commissioned by Deel, highlights how artificial intelligence is accelerating a structural shift in the global labour market. The findings indicate that two in three organisations worldwide expect to slow entry-level hiring over the next three years as AI takes over more administrative, repetitive and knowledge-based tasks once performed by early-career workers. In Singapore, the trend is less pronounced but still notable, with 53 percent of firms anticipating a slowdown.
The impact is already widespread. Ninety-one percent of organisations globally say that job roles have changed or been displaced due to AI, and Singapore reflects the same pattern. AI adoption is now far past the pilot stage. Nearly 70 percent of organisations have integrated AI into core operations across departments such as IT, customer service, HR and finance.
These shifts raise concerns about long-term talent development. A majority of organisations globally report growing difficulty recruiting and training future leaders as early-career pathways shrink. Companies in Singapore experience this even more sharply, with three in four noting that leadership development is becoming harder as traditional entry-level tasks disappear.
Despite the uncertainty, organisations continue to invest in workforce development. Sixty-seven percent of companies worldwide report investing in AI training, with Singapore ahead at 74 percent. Yet employee engagement remains a challenge, and Singapore records the lowest participation in AI training across Asia. Organisations cite limited engagement, budget pressures and the lack of expert trainers as persistent barriers.
Nick Catino, Global Head of Policy at Deel, said AI is now a fundamental driver of workplace change. “AI is no longer emerging, it’s fully here,” he said. “It’s reshaping how we work and how businesses operate. Entry-level jobs are changing, and the skills companies look for are too. Both workers and businesses need to adapt quickly. This isn’t about staying competitive, it’s about staying viable.”
Redesigning roles and restructuring work
The adoption of AI is reshaping job structures across almost every market. Nearly all surveyed organisations have implemented AI in some form, and close to 70 percent have deployed it in core business processes. This has prompted widespread role redesign, shifting human work toward oversight, judgement and creative problem-solving.
One-third of organisations globally have undergone significant workforce restructuring to integrate AI. Countries such as New Zealand, Argentina and the United States report some of the highest levels of job displacement, driven by rapid automation and digital transformation. Singapore has the highest displacement rate in Asia at 48 percent.
However, not every market is seeing the same pattern. China reports the lowest displacement rate, despite strong AI adoption. Rather than removing roles, Chinese organisations focus heavily on redesigning them, supported by national efforts to reskill workers at scale. This approach has allowed companies to adapt job scopes without eliminating entire roles.
Industries such as media, retail, healthcare, logistics and professional services are seeing the greatest reduction in entry-level hiring. These sectors have long relied on process-driven roles that are now easily automated. Singaporean companies report a steep decline in on-the-job learning opportunities for junior employees, with 70 percent saying such opportunities have diminished.
Reskilling gaps and changing skill priorities
AI is also redefining what employers expect from early-career talent. Academic qualifications are declining in importance. Only 5 percent of global companies consider a university degree essential for entry-level roles, and in Singapore, only 2 percent say the same. Instead, employers are prioritising hands-on skills and measurable competency.
Technical certifications in AI and coding, strong critical thinking skills and the ability to communicate and collaborate effectively now rank among the top requirements. In Singapore, the emphasis is stronger than the global average. Sixty-nine percent of firms prioritise technical certifications, and 61 percent seek proven problem-solving capabilities. Half also expect candidates to have a portfolio of practical work.
This marks a significant shift from traditional entry-level hiring. Organisations now expect junior employees to arrive with foundational AI literacy and the ability to contribute immediately. As a result, the bar for entry-level roles is rising, increasing the pressure on young workers and widening the skills gap.
Reskilling efforts face structural challenges. Limited employee engagement remains the most common barrier, followed by budget constraints and the shortage of specialised trainers. Only a small proportion of organisations have dedicated teams managing AI reskilling, and many remain uncertain about which department should take responsibility. Without clear ownership, reskilling efforts progress slowly and inconsistently across the workforce.
Talent shortages, incentives and governance gaps
Organisations continue to struggle with talent shortages as AI adoption accelerates. Many cite legacy systems as barriers to integration, while others face difficulties recruiting experienced AI professionals. To remain competitive, employers are increasingly willing to offer significant salary premiums for AI specialists. Markets across Asia Pacific lead this trend, and Singaporean firms are also raising compensation to secure needed talent.
Beyond pay, companies are offering incentives such as access to advanced tools, well-defined career pathways and structured development opportunities to attract and retain AI professionals. These incentives have become essential in a tight and highly competitive talent market.
Regulatory uncertainty adds another layer of complexity. Only a small minority of organisations feel very familiar with local AI regulations, and many find existing rules unclear or difficult to navigate. Singapore stands out as a market where organisations express relatively higher confidence in regulatory clarity. However, most global markets continue to grapple with ambiguous guidelines and limited visibility on compliance requirements.
Internal governance also lags behind adoption. Only 22 percent of organisations have formal internal AI policies. Most rely on informal guidelines, raising risks around data use, accountability and ethical application. Singapore’s numbers mirror these global trends, with more than half of firms operating without formalised internal policies.
Dr Chris Marshall, Vice President for AI in Asia Pacific at IDC, said organisations must balance innovation with human development. “Artificial intelligence is reshaping the global workforce at an unprecedented pace, outstripping any recent technological shift,” he said. “Organisations that will thrive are those that unite automation with a human-centred vision, investing in upskilling, redefining entry-level opportunities, and ensuring that governance and ethics evolve in step with innovation.”
